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���������ֳ�-London-12 May 2025: D.V.I. Deutsche Vermögens- und Immobilienverwaltungs GmbH's EUR350 million five-year green bond, launched today, allows for proactive liability management, addressing the issuer’s bulk January 2027 bond maturity and elongating its debt maturity profile, says ���������ֳ�. The bond offering does not affect DVI’s ‘BBB’/Stable’ Issuer Default Rating, nor its ‘BBB-’ senior unsecured rating which is applied to its existing EUR350 million 2.5% coupon senior unsecured bond and the new replacement bond.

Proceeds from the new bond will be dedicated to prepaying the existing EUR350 million bond, with bondholders invited to invest in the new bond. If additional funds are raised relative to amounts tendered for the existing bond, DVI plans to place the new bond’s excess proceeds in a dedicated account awaiting the existing bond’s scheduled repayment in January 2027.

DVI’s Berlin-weighted residential-for-rent portfolio, valued at EUR2.3 billion, has shown stability, with a 4.3% like-for-like increase in residential rents/sqm in 2024 after phased CPI uplifts. This contributed to the group’s EBITDA, which rose to EUR93 million (2023: EUR86 million), benefiting from a EUR7 million increase in net rents. Of this, EUR3 million was from the residential portfolio in which tenant churn, at 6.1% in 2024, and tenant improvement capex, was low. Berliners prefer to stay on existing low-rent leases rather than start new leases closer to higher reference rents. The vacancy rate was also low at 1.7%.

Rent increases in DVI’s EUR0.6 billion commercial portfolio, which mainly comprises secondary offices, were also helped by CPI uplifts and a steady occupancy rate of 88%, broadly flat from 2023. Rent increases were also driven by fit-outs and building upgrades ahead of lettings to the tenant.

���������ֳ� calculates that net debt remained unchanged at around EUR1.4 billion as at end-2024, using the nominal value of the subsidised investment loans. The increase in EBITDA improved ���������ֳ�-calculated residential-focused net debt/EBITDA to 17.3x (2023: 19.0x) commensurate with the rating. The figure is derived after ���������ֳ� allocates a 9x net debt/EBITDA debt capacity to the commercial portfolio. ���������ֳ� expects DVI’s average cost of debt to rise as the bonds are repriced in a higher interest-rate environment, but interest cover should remain comfortable at around 2x.

Up to 54% of DVI's residential buildings, or 76% of its total portfolio, had energy performance certificates (EPCs) in band B or above and 38% in band C, indicating that capex requirements should be limited over the coming years. This reflects its building types and those extensively refurbished in the last few decades.

DVI holds a large share of assets through stakes in funds' units, which are less liquid, also due to minority interest ownerships. This constrains DVI's ratings.

Part of the new bond’s documentation has been updated to market practices. The negative pledge clause refers to secured “Capital Market Indebtedness”, which allows secured bank debt to be raised, but the maximum 45% secured financial indebtedness/total assets debt incurrence covenant remains in place from the current bond’s documentation, as does the unencumbered assets/unsecured financial indebtedness covenant of a minimum 1.25x. The incurrence loan-to-value ratio of a maximum 60% and maintenance interest cover above 1.8x both remain unchanged.

Contacts:
John Hatton
Managing Director
+44 20 3530 1061
john.hatton@fitchratings.com
���������ֳ� Ltd 30 North Colonnade, Canary Wharf London E14 5GN

Felix Raquet
Senior Analyst
+49 69 768076 249
felix.raquest@fitchratings.com


Media Relations: Tahmina Pinnington-Mannan, London, Tel: +44 20 3530 1128, Email: tahmina.pinnington-mannan@thefitchgroup.com

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